NTC to review papers of Smart-Digitel merger deal

The National Telecommunications Commission (NTC) on Friday said it is still waiting to receive the transaction documents on the Philippine Long Distance Telephone Co.’s (PLDT) takeover of Digital Telecommunications Philippines (Digitel). “We haven’t received [yet] the final document of their transaction. I think they’re still finalizing it," NTC Commissioner Gamaliel Cordoba told Malacañang reporters. “As soon as we get it, itutuloy po namin iyong pag-aaral ng merger ng dalawang telephone companies [we will continue studying the two telephone companies’ merger deal]," Cordoba added. PLDT, which owns cellular service provider Smart Communications Inc., belongs to a group of companies owned or controlled by leading Filipino businessman Manuel V. Pangilinan. Digitel, which operates Sun Cellular, is in turn owned by the Gokongwei-owned JG Summit Holdings. Last Wednesday, President Benigno Aquino III said he was studying the possible impact of the impending merger of Smart and Digitel particularly on the price of service that consumers pay for their mobile phone services. (See: Aquino concerned over impending merger of Smart, Sun) “We want to ensure that there is a level playing field," Aquino said at the time. Cordoba said the NTC already started the study “in cooperation… with the [administration’s] economic team." The Department of Justice will also take part in the assessment of the merger of the Pangilinan-led and Gokongwei-led telecommunications firms, he said. In the same press briefing, Smart spokesperson Ramon Isberto said they will maintain and continue the services of Sun Cellular and even further improve it. “If you are currently a Sun [Cellular] subscriber, you should be happy that this transaction is taking place," Isberto said. He also said that Smart will also improve the reach of services of Sun Cellular, known for its unlimited call and text products. He pointed out that the objective in acquiring Digitel is to strengthen the ability of PLDT — the country’s largest telecommunications firm — to provide broadband services in larger areas of the country. “The challenge for telcos is how to provide broadband service, expand to more areas in the country, and remain viable. The transaction gives us a glimpse of the future. And, the future of telecommunications services is broadband," Isberto said. William Pamintuan, senior vice president for legal affairs of Digitel, agreed with Isberto, saying the transaction will allow Sun Cellular to expand the coverage of its “unlimited" services. On the other hand, Ayala-owned Globe Telecommunications Inc. commended the Aquino administration’s efforts to review the merger of Smart and Digitel. “Like what’s going on between the merger of US’ AT&T and T-Mobile, their government is very, very careful in studying the transaction," said Yolanda Crisanto, head of Globe’s corporate communications affairs. “At the end of the day, we go back to the consumers. Will consumer be given a choice? Are we diminishing competitiveness in this industry?" Crisanto said. Last March, AT&T announced it is buying T-Mobile for a whooping $39 billion in cash and stocks.—JE/JV, GMA News